Ferrero, Kellogg and breakfast cereal
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Just Food on MSNFerrero reaches for the cereal bowlFerrero has once again used M&A to expand into another part of the store – but will it pay off? After The Wall Street Journal and Reuters reported on Wednesday (9 July) Ferrero was nearing an agreement to buy WK Kellogg Co,
Shares of WK Kellogg, the cereal maker behind Fruit Loops and Frosted Flakes, skyrocketed 50% after the Wall Street Journal reported Wednesday that Ferrero was nearing acquiring the company for $3 billion.
Kellogg, the maker of such brands as Frosted Flakes, Froot Loops, Rice Krispies and Raisin Bran, began business in 1906 as the Battle Creek Toasted Corn Flake Co., before becoming Kellogg Toasted Corn Flake Co. in 1909.
Shares of WK Kellogg soared following a report by The Wall Street Journal that Italian candy maker Ferrero is nearing a $3 billion deal to buy the cereal conglomerate. WK Kellogg stock was up 52%, at $26.53, after hours. Shares closed the market down slightly year-to-date.